In early February, the National Labor Relations Board (“NLRB”) once again ruled that a class action waiver included in a mandatory arbitration agreement workers were required to sign as a condition of employment violated federal law. In Waffle House, Inc. and Carrie Harris, No. 10–CA–121178, a divided three-member panel found that the arbitral provision at issue violated the National Labor Relations Act.
According to the Board,
By maintaining a mandatory arbitration agreement that requires employees, as a condition of employment, to waive the right to maintain class or collective actions in all forums, the Respondent has violated Section 8(a)(1) of the Act and has thereby engaged in unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act.
As a result, the NLRB ordered the Waffle House to remove the collective action waiver from the mandatory agreement.
